Declining Inequality in Latin America in the 2000s : The Cases of Argentina, Brazil, and Mexico

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Abstract

Between 2000 and 2010, the Gini
coefficient declined in 13 of 17 Latin American countries.
The decline was statistically significant and robust to
changes in the time interval, inequality measures, and data
sources. In-depth country studies for Argentina, Brazil,
and Mexico suggest two main phenomena underlie this trend: a
fall in the premium to skilled labor and more progressive
government transfers. The fall in the premium to skills
resulted from a combination of supply, demand, and
institutional factors. Their relative importance depends on
the country.